The United Kingdom has sanctioned cryptocurrency exchange HTX, alleging ties to Russian financial networks involved in sanctions evasion. British authorities say they have “reasonable grounds to suspect” HTX provided services linked to sanctioned entities, including crypto exchange Garantex and the A7 network, which issues the ruble-pegged A7A5 stablecoin.
The Foreign Office claims the A7 network used a Kyrgyz bank and a major exchange to channel an estimated $1.5 billion back into Russia. The network reportedly moved over $90 billion last year-roughly half of Russia's annual military expenditure.
U.K. financial institutions are now barred from doing business with HTX. U.K.-registered virtual asset service providers must freeze funds linked to the designated entities. The sanctions also restrict correspondent banking relationships and payments involving HTX.
Following the announcement, exchanges Binance, OKX, Bybit, and Bitget issued notices warning users about increased scrutiny on HTX-related transactions. Bitget updated its sanctions screening systems; Binance said transactions involving HTX may face “additional compliance review.” OKX warned users engaged in arbitrage trading between HTX and OKX that continued transfers could trigger extra scrutiny. Bybit cautioned that deposits or withdrawals involving HTX-linked addresses may face added anti-money laundering checks.
HTX has rejected the UK’s claims, stating it refused a listing application for the A7A5 stablecoin. The company distinguishes itself from the listed entity Huobi Global S.A., saying the designation should not affect the online HTX exchange.